BitGo is the last cryptocurrency exchange working with the Mt. Gox Trustee. To get ready for paying back creditors, it has made a lot of major on-chain Bitcoin transfers. Arkham data that tracks Mt. Gox’s currency shows that on August 12, BitGo’s wallet, which was marked “bc1q26,” sent 33,105 Bitcoin, which is worth about $2 billion.
This comes after BitGo’s earlier test transaction. This is a typical thing to do in the web3 space to make sure that the destination wallets are safe and that no assets are lost before big transfers. People see the exchange as an important step that must be taken before Mt. Gox users can get their updated Bitcoin balances.
Bitcoin Market Faces Volatility
During creditor payouts in the past, Kraken and Bitstamp went through similar steps. Less than $6 billion has been paid back to users by Mt. Gox so far. The exchange shut down after being hacked several times between 2011 and 2014. It plans to return a total of $9 billion in cryptocurrency.
An expert says that in the next few days and weeks, about 20,000 creditors will get Bitcoin and other cryptocurrencies. A bankruptcy court in Tokyo has given the Trustee until October 2024 to finish the payments plan.
Even with the latest transfers, Mt. Gox still has more than $3 billion in Bitcoin on hand, most likely to give to users in the future. BTC price could go up and down quickly because creditors are still making payments and may sell some of their holdings.
BTC was worth $59,500 at the time of the study, and the whole market for digital assets was worth $2.18 trillion.
